Marex, a diversified global financial services platform, is in the ‘advanced stages of exclusive talks’ for the acquisition of voice brokerage activities of OTCex Group.
Announced on Tuesday, the purchase will be made from three OTCex Group subsidiaries: HPC SA, OTCex Hong Kong and OTCex LLC. That is if the two companies agree to a deal.
The companies are waiting for a final agreement after the OTCex Employee Representative Bodies have been informed and consulted. Additionally, it will need a green light from regulators.
Though scarce in retail space, voice brokers are prevalent in the institutional market. They allow traders to execute trades over phone calls rather than using electronic trading platforms. These services are used for large volume trades and executing complex orders.
OTCex operates a significantly large voice brokerage operation, employing around 200 staff globally. It is headquartered in Paris and has offices in London, Dubai, Hong Kong, New York, Paris, Milan, Tel-Aviv and Lisbon.
Mentioning the importance of the potential deal, Marex stated: “This potential transaction provides a number of synergies to both parties. OTCex will benefit from access to Marex’s global infrastructure and balance sheet, and the addition of OTCex will strengthen Marex’s capabilities in Equities and Fixed Income.”
Aggressive Expansion
Marex provides liquidity , market access and infrastructure services to clients in energy, commodities and the financial markets. On top of that, it is a major introducing broker for several brands.
Furthermore, the London-headquartered company is expanding its global footprint. It received the regulatory approval from the Australian Securities and Investment Commission (ASIC) last December followed by the opening of an office in Minneapolis, United States.
Also, the financials of the company witnessed a significant surge in 2021 with a 31 percent gain in revenue. Its market-making services saw a growth rate of 29 percent, while discovery data and research services revenue increased by 64 percent.
